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HMRC internal manual

VAT Transport

From
HM Revenue & Customs
Updated
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Pilotage, salvage, towage and surveying services: Law

The law applying the zero-rate to pilotage, salvage, towage and surveying services is in the VAT Act 1994, Schedule 8, Group 8, items 7 to 9:

  1. Pilotage services

  2. Salvage or towage services

  3. Any services supplied for or in connection with the surveying of any ship or aircraft or the classification of any ship or aircraft for the purposes of any register.

Group 8, items 7 to 9 are based on Principal VAT Directive (Directive 2006/112) Article 148(d) and (g)

148 Member States shall exempt the following transactions:

(d) the supply of services other than those referred to in point (c), to meet the direct needs of the vessels referred to in point (a) or of their cargoes;

(g) the supply of services, other that those referred to in point (f), to meet the direct needs of the aircraft referred to in point (e) or their cargoes.